Automotive calculators

Vehicle Depreciation Calculator

Updated Aug 31, 2026 By Jehan Wadia
Rate Formulas
Switches the annual-distance dropdown and results between mi and km.
Turn on to configure a second vehicle and view results side by side.
Results personalized to your mileage and vehicle — no account required.

Depreciation Results

Step-by-Step Solution

Depreciation Curve

Year-by-Year Breakdown

Introduction

Cars lose value over time. This drop in value is called depreciation, and it is one of the biggest costs of owning a vehicle. A new car can lose 20% or more of its value in just the first year. After five years, many cars are worth less than half of what they cost when new.

This vehicle depreciation calculator helps you estimate how much value your car, truck, or SUV will lose over time. Just enter details like the make, model, purchase price, annual mileage, and vehicle condition. The calculator does the math and shows you the projected value of your vehicle year by year. You can also compare two vehicles side by side to see which one holds its value better.

Knowing how fast your vehicle depreciates helps you make smarter choices when you buy, sell, or trade in a car. Use this tool to plan ahead and understand the true cost of ownership before you spend your money.

How to Use Our Vehicle Depreciation Calculator

Enter details about your car below to find out how much value it will lose over time. The calculator gives you a current estimated value, a projected future value, total depreciation in dollars and percent, and a year-by-year breakdown with a chart.

Distance Unit: Pick miles or kilometers. This changes how mileage and results are shown throughout the calculator.

Compare a Second Vehicle: Turn this on if you want to see two vehicles side by side. This helps you decide which car holds its value better.

Vehicle Make: Choose the brand of your car, such as Toyota, Honda, or BMW.

Vehicle Model: Pick the specific model, like Camry or Civic. The list updates based on the make you chose.

Purchase Price / Current Value: Type in the original price of the vehicle when it was new. Enter the amount in US dollars.

Current Vehicle Age: Select how old the car is right now, from brand new up to 5 years old.

Planned Ownership Duration: Choose how many more years you plan to keep the car, from 1 to 5 years.

Annual Mileage: Pick how many miles or kilometers you drive each year. The US average is about 12,000 to 15,000 miles per year.

Vehicle Condition: Rate the overall shape of the car as Excellent, Good, Fair, or Poor. Cars in worse condition lose value faster.

Accident History: Select Yes if the car has been in a reported accident. An accident on record increases depreciation.

Fuel / Drivetrain Type: Choose what powers your car: Gasoline, Hybrid, Plug-In Hybrid, Electric, or Diesel. Each type affects how fast the car loses value.

Press the Calculate button to see your results. Press Reset to clear all fields and start over.

What Is Vehicle Depreciation?

Vehicle depreciation is how much value your car, truck, or SUV loses over time. The moment you drive a new vehicle off the lot, it starts to lose value. This drop in price happens every single year you own it. Depreciation is the biggest hidden cost of owning a vehicle, often more than gas, insurance, or repairs.

How Fast Do Cars Lose Value?

Most new cars lose about 20% of their value in the first year alone. After five years, many vehicles are worth only 40% to 60% of what they cost when new. Some brands and body types hold their value better than others. Trucks and SUVs tend to depreciate slower than sedans. Luxury and electric vehicles often lose value faster in the early years. Our used car value calculator can help you estimate what a pre-owned vehicle is worth today.

What Affects How Much Your Car Depreciates?

Several things change how fast your vehicle loses value:

  • Make and model: Some brands like Toyota and Honda are known for holding value well. Others, like luxury or newer EV brands, can drop in price quickly.
  • Mileage: The more miles you drive each year, the faster your car loses value. A car with high miles is worth less than one with low miles.
  • Condition: A well-kept car in excellent shape is worth more than one with dents, stains, or mechanical problems.
  • Accident history: A reported accident on your vehicle's record can lower its resale value by 10% to 15% or more.
  • Fuel type: Gas and hybrid cars tend to hold value steadily. Some electric vehicles depreciate faster due to rapid changes in battery technology and new model releases.

Why Vehicle Depreciation Matters

Knowing how much your car will depreciate helps you make smarter money decisions. If you plan to sell or trade in your vehicle in a few years, depreciation tells you roughly what it will be worth. Our trade in value calculator can give you a quick estimate of what a dealer might offer. It also helps you compare two vehicles side by side to see which one will cost you less over time. A car with a lower sticker price can actually cost more if it loses value faster than a slightly more expensive one that holds its worth.

When financing a vehicle, depreciation also affects how much equity you have in the car. If you owe more than the car is worth, you are "upside down" on your loan. If you are considering leasing instead of buying, our car lease calculator can help you compare those costs.

Use the calculator above to estimate your vehicle's future value, see year-by-year depreciation, and find out how much owning your car really costs each month.

Formulas used

Mileage Adjustment Multiplier
M_{\text{mileage}} = 1 + \frac{\text{miles} - 12{,}000}{12{,}000} \times 0.35 \quad (\text{clamped to } 0.70 \le M \le 1.40)
Combined Adjustment Multiplier
M = M_{\text{fuel}} \times M_{\text{mileage}} \times M_{\text{condition}} \times M_{\text{accident}}
Effective Annual Depreciation Rates
r_1 = r_{1,\text{base}} \times M, \quad r_{2+} = r_{2+,\text{base}} \times M
Estimated Current Value (Declining Balance)
V_{\text{current}} = P \times \prod_{y=1}^{\text{age}} (1 - r_y)
Projected End Value
V_{\text{end}} = V_{\text{current}} \times \prod_{y=\text{age}+1}^{\text{age}+n} (1 - r_y)
Total Depreciation and Average Costs
D = V_{\text{current}} - V_{\text{end}}, \quad C_{\text{annual}} = \frac{D}{n}, \quad C_{\text{monthly}} = \frac{D}{12n}
Annualized Depreciation Rate
r_{\text{annualized}} = 1 - \left(\frac{V_{\text{end}}}{V_{\text{current}}}\right)^{\frac{1}{n}}

Frequently asked questions

What does the first-year depreciation rate mean?

The first-year rate is the percentage of value a brand-new car loses in its first year. It is usually the highest rate because new cars lose the most value right after purchase. After the first year, the rate drops and stays more steady.

Why do trucks and SUVs depreciate slower than sedans?

Trucks and SUVs tend to hold value better because demand for them stays high. They are popular for work, towing, and family use. Strong demand in the used market keeps their resale prices higher compared to most sedans.

Why do luxury cars lose value so fast?

Luxury cars have high starting prices, expensive maintenance, and new models come out often with updated technology. Buyers in the used market are less willing to pay top dollar for older luxury features, so values drop quickly.

Does an accident really lower my car's value that much?

Yes. A reported accident can reduce your car's resale value by about 10% to 15%. Even if the car was fully repaired, buyers and dealers see accident history as a risk. The calculator adds a 15% increase to your depreciation rate when you select "Yes" for accident history.

How does mileage affect depreciation?

Higher mileage means more wear on the engine, brakes, and other parts. Cars with more miles are worth less because they are closer to needing expensive repairs. The calculator increases your depreciation rate if you drive more than the US average of about 12,000 miles per year, and decreases it if you drive less.

Why do electric vehicles depreciate faster?

EV technology changes quickly. Newer models often have longer range and better features, which makes older ones less desirable. Battery concerns and changing government incentives also play a role. However, some popular EVs like certain Tesla models can hold value better than average.

What is the difference between Excellent, Good, Fair, and Poor condition?

Excellent means the car looks and runs like new with no visible issues. Good means minor wear but no major problems. Fair means noticeable wear, small dents, or mechanical issues that need attention. Poor means significant damage, high wear, or mechanical problems that hurt the car's function or appearance.

How is the depreciation percentage calculated?

The depreciation percentage is the total dollar amount lost divided by the car's value at the start of your ownership period, multiplied by 100. For example, if your car is worth $25,000 now and drops to $15,000, the depreciation is $10,000 ÷ $25,000 × 100 = 40%.

What does average monthly depreciation cost mean?

It is the total depreciation divided by the number of months you plan to own the car. This tells you how much value your car loses each month on average. It helps you understand the true monthly cost of owning the vehicle beyond just your loan or lease payment.

Does switching between miles and kilometers change the results?

No. The underlying math stays the same. Switching units only changes how mileage numbers are displayed. The annual mileage options convert between miles and kilometers so you can read them in your preferred unit.

Why is my car's current estimated value different from what I see online?

This calculator uses a model-based estimate that looks at brand, body type, age, mileage, and condition. Online listings reflect actual market prices, which also include trim level, color, local demand, and dealer pricing. Both are useful, but they measure value in slightly different ways.

What vehicle age should I pick if my car is between years?

Round to the nearest whole year. If your car is 2.5 years old, select 2 or 3 years. A small difference in age will only slightly change the result.

How does fuel type affect depreciation?

Hybrids tend to depreciate a bit slower because of their fuel savings and steady demand. Diesel vehicles also hold value slightly better. Plug-in hybrids and pure electric vehicles can depreciate a bit faster due to rapid technology changes and buyer uncertainty about battery life.

What is a good depreciation rate?

A vehicle that loses less than about 11% per year is considered to hold its value well. Between 11% and 17% per year is average. Above 17% per year means the car depreciates quickly. The calculator shows a color-coded badge (green, amber, or red) to help you see this at a glance.

How can I reduce my car's depreciation?

Drive fewer miles each year, keep the car in great condition, follow the maintenance schedule, and avoid accidents. Choosing a brand and model known for strong resale value also helps. Buying a car that is one or two years old instead of brand new lets you skip the steepest first-year drop.

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